Interest Rates are on the Rise! What Does That Mean for Homesellers?
It’s no secret that interest rates are back on the rise. So, what does this mean for someone looking to put their home on the market? Should they hold off until rates drop or should they lean in and push forward?
While there’s no question that interest rates play a significant role in the housing market, there are a variety of personal and economic matters to consider as well. Below are just a few of the factors you should consider when determining whether or not to sell your home in what would typically identify as a “buyers market.”
The Laws of Supply and Demand
The movement of home prices is strongly affected by supply and demand. The concept here is simple. When supply goes up, home prices will go down. If supply goes down, home prices will likely rise. When demand increases, home prices will also increase. Alternatively, if fewer people are looking to buy homes, then prices will likely decrease. As a seller, these are essential factors to consider when putting your home on the market.
While interest rates may be on the rise, you might find yourself in a market where home inventory is low, which can potentially give the home seller an advantage.
Job Market Growth and Stability
While interest rates may be on the rise, the US job market is experiencing the largest and strongest expansion of US jobs on record. There has now been over 92 consecutive months of gains in US payroll. So, what does this have to do with selling your home? Well, with a secure job environment, buyers are in a better position to accommodate the rising interest rates. This will help keep home prices up even with a rise in mortgage rates.
Strike While the Iron is HOT
Historically, homes prices see a quick initial jump when interest rates are on the rise. This is because the majority of buyers will be fearful that rates will continue to climb. Timing is everything at this point. If you work with a good agent who knows your market well, you should be able to come up with a favorable selling price that can sell your home quickly and at a respectable profit- even in a buyers’ market.
As you can see, there are a lot more factors than just interest rates that can affect the sale of your home. Even if all elements were working against you as a home seller, there is one benefit you do have- TIME. In a buyers’ market, you can list your home knowing that it will likely be on the market for a few months before you start to see offers roll in. This situation gives you plenty of time to prepare for the sale and find a new place to move. After selling, you get to take advantage of being a buyer in a buyers’ market!
Don’t get caught walking into the unknown without having an expert on your side. Finding the right agent can make a world of difference in the process of selling your home. Consider this information carefully before coming to a decision, and be sure to team up with a professional real estate agent who has been certified by AdvantageU Home Sellers’ Resource. We take the time to explain the process with you and understand your needs and goals so that you can arrive at the best possible outcome and a successful sale of your property.